AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory method for external reporting but...

AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following disclosure note was included in a recent quarterly report:

4. Inventories (in part)

Inventories are comprised of the following ($ in thousands):

January 31, 2016 October 31, 2015

Raw materials$55,883   $54,467  

Finished goods 105,483    95,363  

Supplies 7,065    7,522    

168,431    157,352  

Less: LIFO reserve (19,220)   (23,853) 

Inventories (under LIFO)$149,211   $133,499  

Required:

1. Assume that AEP adjusts the LIFO reserve at the end of its quarter. Prepare the January 31, 2016, adjusting entry to record the cost of goods sold adjustment.

2. If AEP had used FIFO to value its inventories, what would cost of goods sold have been for the quarter ended January 31, 2016?